Guaranty Bond Law and Legal Definition

A guaranty bond is a bond combining the features of fidelity and a surety bond. It secures both payment and performance. Signature is a necessary part of execution of guaranty bond. In action on guaranty bond, plea of non est factum to guaranty bond putting signatures in issue held to put burden of proof on plaintiff. [McConnon & Co. v. Kirby, 211 Ala. 440 (Ala. 1924)].